Prada Half Year Income Doubles

PradaMilan–Prada reported today that its profit doubled in the first half of this year, propelled by increased sales in Europe, United States and especially in the Far East where sales rose 47%.

While the privately held company doesn’t release a full earnings report, the statement today further bolsters Prada’s position after the company said in June that it may sell shares in a possible IPO.

Prada said earnings before interest, tax, depreciation and amortization in the six month period to July 31 was 225.2 million Euros (about $294.7 million) and reaching about 60% of its full-year target of 370 million Euros. Net profit in the period was 103 million Euros.

Sales increased in both the wholesale and retail channels, with stores directly operated by Prada posting 41% revenue growth as a result of openings, the company said. Excluding new stores, sales rose 22%.

Similar to recent earnings reports from Hermès and LVMH which reported strong half year income and sales increases, Prada also saw increases in most of its major market especially Asia. Sales in the Far East increased 47% while the United States rose 30% and Europe grew 19%.

“The Prada Group’s strategy, aimed at a growth in all markets, will be further strengthened in the following years through the development of our directly operated stores network,”  Patrizio Bertelli, ceo, said in the statement.

Better operating margins allowed Prada to meet “the whole financial need” of expanding its retail network and to improve its net financial position, the company said. Prada directly operates 292 stores in 80 countries under the Prada, Miu Miu, Church’s and Car Shoe brands.

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